Strategy before delivery of a script in to DEMAT

General
1

Hi,
Can someone pls guide with my below querry as iam new & learning concepts of swing trading:

Example - I have taken delivery of a script on say Monday,so it takes T+3 which means on Thursday evening it should reflect on my DEMAT account(Pls correct me if iam wrong). Now the situations-

Situation -1.If my desired target is achieved on next day ie Tuesday itself, can i sell that script ? Heard there are some risks associated with it. Pls guide to enhance my knowledge.

Situation -2.If some bad news arises for that particular script on Monday eve and its highly expected that there will be a lot of profit booking on Tuesday session & maybe in forthcoming sessions too.What should be my strategy on this? Should i wait till the script gets in to my DEMAT account(Thursday eve) & may be by that time the stock might have fallen very badly and iam in big spot of bother .

Pls share your ideas & experience on above 2 situations.

Thanks & Brgds
Sajin

2

It takes T+2 days for the shares to come into Demat, so if you buy on Monday, it will come into your Demat account on Wednesday eod.

Situation 1 : If you achieve your target on Tuesday, then you can sell it on Tuesday. It will be a BTST trade. The only risk here is the risk of auction penalty if the person who sold you the shares on Monday does not possess the shares in Demat. Then you will end up short delivering if you sell it on Tuesday. Read more here.

Situation 2: If there is very bad news for a stock on Monday evening, then it’s highly likely it will open at a lower price on Tuesday. Monitor your position and exit favorably even if at a loss and probably enter at a later stage once things settle down. Or get into another counter.

3

Thank you so much for the clarification…

Brgds
Sajin

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